Uganda’s economy expanded by 6.4% in the 2025/26 fiscal year, a marginal increase from the 6.3% growth recorded in the previous year.
According to the government’s annual report on budget execution and economic performance, nominal GDP reached 250.4 trillion Ugandan shillings—approximately $69.3 billion—up from 227.9 trillion shillings, or $62 billion, a year earlier.
Finance Minister Henry Musasizi presented the performance data to Parliament’s Committee on Budget on November 11. During the same period, the government collected 37.99 trillion shillings in revenue and grants, with tax revenue accounting for 34.05 trillion shillings. This figure represents a 14% increase in tax collections compared to the prior year, effectively meeting the government’s annual target.
ANNUAL BUDGET PERFORMANCE REPORT & THE MACROECONOMIC AND FISCAL PERFORMANCE REPORT FOR FY2025/26 Finance Minister @henrymusasizi1 today presented the Annual Budget Performance Report and the Macroeconomic and Fiscal Performance Report for FY2025/26 to Parliament's Committee on… pic.twitter.com/Ns6n2yusKb
“Government continued implementing strategic interventions aimed at increasing household incomes, promoting enterprise development and accelerating economic transformation. These included the Parish Development Model (PDM), Emyooga, affordable development financing through the Uganda Development Bank (UDB), investment in strategic infrastructure and progress in the oil and gas sector,” said Henry Musasizi.
The 2025/26 fiscal year marked the inaugural period of the Fourth National Development Plan (NDP IV). As part of this plan, the government disbursed 92% of allocated funding to the Parish Development Model, a program designed to support household businesses. Officials said that future income growth depends on the ability to translate these funds into increased production, value addition, and improved market access.
The current development framework aligns with the government’s Tenfold Growth Strategy, which targets an economic expansion to $500 billion by 2040. Strategic priorities under the plan include agro-industrialization, tourism, mineral-based industrial development, and advancements in science, technology, and innovation.
